Claire’s Accessories’ UK business does not face looming closure, despite reports that the retailer’s core US business may file for bankruptcy.
A spokesperson for Claire’s owner Apollo Global Management told City AM that developments in the US will not affect the UK business.
It has been reported that Claire’s is labouring under a $2bn debt burden and hopes to strike a deal with Elliot Capital Management and Monarch Alternative Capital.
The retailer has not commented, but an Apollo spokesperson reassured City AM that Claire’s operations in Europe will not be affected. Claire’s has 378 UK stores and 123 concessions.
According to Claire’s latest Companies House accounts, its UK sales rose 4.4% in 2016 from £121.7m to £127m. Operating profit fell 65% to £2.4m.
Claire’s UK finance director Stuart Brown said in the financial report that the US parent had decided to bring in an investment bank to advise on its debt, but that the company believes it would be able to meet commitments and could operate for at least a year from February 1, 2018.